Pledged Receivables Are Reported as Current Assets While Assigned Receivables

question 40

True/False

Pledged receivables are reported as current assets while assigned receivables are reported as non-current assets.

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Definitions:

Depository Bank

A financial institution where deposits are made, held, and managed; also facilitates financial transactions for clients.

Settlement

An agreement reached between parties in a dispute, where usually one party agrees to provide compensation to the other, ending the dispute outside of court.

Creditor

An individual, company, or institution to whom money is owed by another party, the debtor.